Audit : internal control

Why in audit we must understand and test internal control in a entity ?

Because, in an entity must have had SOP (standard operasional procedures) to carry out its activities. what is the significance of the SOP (standard operasional procedures) ? SOP (standard operasional procedures)  is very important for an entity one of them is to perform internal control before to do the external audit. so, now SOP (standard operasional procedures) must also be understood by those involved in the entity to carry out the activities therein. the conclusion is audit must understand and test the control of an entity's internal audit in order to determine whether it is correct to implement and adhere to the SOP (standard operasional procedures) that has been made by an entity.

Erizal Wibisono S (C1L014026)

Accounting International Program